PM: mining tax not in talks

Rio Tinto
chief executive
Tom Albanese
discussed rising costs, rather than concerns about the government’s Minerals Resource Rent Tax, when he had a meeting with Prime Minister
Julia Gillard
.

Ms Gillard said she had a “direct conversation" with Mr Albanese during the week in which “he described as an around-the-world phenomenon, in­creases in the capital costs associated with mining".

The mining giant is reviewing its coal expansion plans as increasing capital costs and investor pressure to return more cash prompts miners to reassess projects.

The Australian dollar, which remains above parity with the US dollar, industry-wide cost inflation and ballooning wages caused by a shortage of tradespeople, engineers and welders, mean doing business in Australia has become less attractive than their other global operations, miners say.

“We’ve got to bear that context in mind," Ms Gillard said. “We did not have a discussion about the Minerals Resource Rent Tax.

“I’m sure Mr Albanese has views about it and I don’t mean to suggest he shouldn’t put those views forward ­publicly.

“He would also, I’m sure, be very well aware it’s legislated and it’s starting on the first of July and it’s about giving Australians a fair share of this resources boom."